If you have received a contributions bill (missing Class 1)
I have received a missing Class 1 contributions letter, what is it?
Every quarter (3 months) we send out letters to anyone that we have not received either any or enough contributions from. The letters are to alert you to the fact that you do not have enough contributions for a particular quarter.
Why have I received a missing Class 1 contributions letter?
There are many reasons you may not have any or enough contributions for the time we are looking at, but the most common reasons are:
- your employer has not submitted your earnings details
- you were away from the Island for all or part of that time
- you were not working for any reason for some or part of that time
- you earned below the lower earnings limit (for 2012 this is £796 per month) in any of the months
- you are over 18 and in full time education
- for some reason we do not have record of your earnings for this time
Please note: it will state clearly on the letter which 3 month period we are looking at.
What do I do?
Do not ignore the letter. This is very important as not paying your contributions for long periods of time can lead you being passed on to our Enforcement team and they can take the decision to pursue you for the amount.
You should pay if you can
To find out how much you need to pay you must provide us with your 2010 income tax assessment and we will calculate how much you owe. Your contributions go towards a number of benefits such as sickness and pension, in order to be able to claim these benefits contributions must be paid.
If you cannot pay
It is possible for us to excuse you from paying (waive the amount). For us to do this, we must know the reason for your missing contributions. You must complete the declaration on the back of the letter sent to you, sign it and return it to us. Depending on what your reason for not paying is, we will make a decision on whether or not we will waive your contributions.
Please make sure you give us your up to date contact details.
Why waiving your contributions is only a short term option
Waiving your contributions is only a short term option. If you are going to continue to be unable to pay any contributions either through employed work (Class 1 contributions) or through self-employed work (Class 2 contributions) then you will need to speak to one of our advisors about coming to a more long-term agreement. It might be that you are entitled to help with covering your contributions.
About contribution credits
Caring for a child at home - Home Responsibility Protection (benefits and financial support section)
Students over 18 in full time education
People on a small income
How not paying affects you
By not paying you will have a gap in your contributions record and this will affect you being able to claim benefits such as sickness and maternity. It will also have a long term effect on how much pension you get.
If non-payment becomes an ongoing issue our Enforcement team may become involved and choose to pursue you for payment.